TSX ends up up 33 points, or 0.15%, at 21,453. Energy stocks jump after the U.S. says it will release oil from reserves.
Nov 23 Reuters- Canada's main stock index went up on Tuesday, snapping its four day losing streak as gains in energy shares on higher oil prices and OrganiGram Holdings Inc's upbeat results offset mining companies that followed gold prices lower.
The Toronto Stock Exchange's S&P TSX Composite Index closed up 33 points, or 0.15%, at 21,453. The index is up 23.1% year to date.
The energy sector went up by 3.8% after the United States and other consumer nations released tens of millions of barrels of oil from reserves to try to cool the market.
Steve Belisle, portfolio manager at Manulife Investment Management said the oil price is reacting strongly to the U.S. front-running release of barrels from the strategic reserve. The oil price and Canadian oil and gas stocks are propped up by that. OrganiGram, which closed up 8.9%, was the largest percentage gainer on the index after the cannabis producer posted better than expected fourth-quarter revenue and forecast higher revenue for the following quarter.
Financials, which account for about 30% of the Toronto market's value, extended gains for a second session, rising 0.5% and tracking U.S. bank stocks as investors priced in an early policy tightening by the Federal Reserve.
The gains in bank stocks were attributed to rising bond yields and bullish analyst previews for fourth-quarter earnings, which are reported next week, according to Belisle.
The materials sector, which includes precious and base metals miners and fertilizer companies, fell by 4.6% to its lowest level since March, falling 4.6% to its lowest close since March. 5 an ounce. Lundin Mining Corp shares ended the day down 3.3%, further hit by lower-than-expected production guidance for 2022 through 2024 and projected costs above analysts' estimates.